Letter to Finance Minister A.Schillerová on Digital Services Tax

We write to support the Czech government’s cautious approach to the proposed Digital Services Tax, a Council Directive COM/2018/0147 final - 2018/072 (CNS).

We question the necessity of the tax and its fairness. We worry that its economic impact will harm European competitiveness. We are concerned that it will make wider alignment on taxation more difficult, and that implementation of the tax will prove costly and difficult. Finally, we note that the current proposal may violate principles of double taxation and subsidiarity.

For these reasons, we urge that more time be taken to determine the consequences and benefits of the DST proposal.

Finf full version of the document in Czech and English attached below.